let's get it started with your first word news. the house has voted to tighten visa rules. the waiver program allows visa free entry to the u.s. for citizens of 38 countries. loaner arranged alone -- a farook weeks before he and his wife arrived in the u.s. athorities are examining $28,500 deposit into his bank account in mid-november. a government watchdog says more than a dozen of the nation's busiest air traffic facilities don't have enough controllers. an inspector told a congressional committee today the situation demands urgent .ttention

new york, dallas, denver, and chicago have a large share of controllers that are still being trained and are not ready to work on their own. you can get more on these and other breaking stories 24 hours a day at bloomberg.com. emily: i am emily chang and this is "bloomberg west." coming up, yahoo! goes all in on scrappingeportedly plans to sell its multimillion dollar stakes. plus, cisco hopes a bigger push into the house will lead to sunnier profits, but with different -- will stiffer rain on their

parade? i sit down with a man who runs the venture arm of the company formerly known as google. first, to our lead and the potentially blockbuster news about yahoo!. they are bailing on plans to sell a $32 billion stake in and will focus instead on a possible sale of its web business -- yes, the stuff that makes yahoo! yahoo!. joining me now is cory johnson. investor in yahoo! and alibaba, and a managing firm.r at a venture also, the former ceo of the huffington post. you., i want to start with what do we know? cory johnson: they have decided

not to go forward with the spinoff of alibaba. this was the great hope of shareholders. alibaba is worth so much more spinoff couldhe happen in a way that would give shareholders of core yahoo! and a share of the spinoff, and therefore not be considered a taxable event. shareholders would therefore not have to pay for the capital gains. , the taxable problem was left a mystery by the irs. yahoo! aould not grant promise that shareholders would not be taxed. shareholders looked at it and said i don't want that if i am going to have to pay attentive taxes on it. so they are cutting off the head to keep the body. emily: mark, as an investor in

both companies, what is your reaction? what are you going to sell? mark: we are actually buyers here. we like yahoo! we like alibaba. we like the long-term story in alibaba for their commerce and business in china. i think this is a nice development. this moves them closer to more model.10 they can spinoff the core business and realize cash that way. we think there is a lot of unlocked potential here that could be freed up by making a good decision. emily: eric, how about you. as an early investor and former ceo of the huffington post, which was bought by aol, what do you think about this idea that they are going to sell off their main business?

eric: it makes a ton of sense. i should've actually predicted that when the irs refused to initiativestaxpayer . we are talking up to $10 billion in taxes. turns oution, if it to be true, is the right one, because without being able to see the value of the remaining business, the core business, what three remaining in yahoo! ownership and alibaba, yahoo! japan, and maybe some other assets. do ithe only way to without incurring massive tax liabilities. emily: is this an admission of defeat for melissa meyer? : this is been a very slow

way to come to this conclusion. the irs would not tell them there will be no taxes. that means there are going to be taxes. with all the time investors, and they hired experts from around the world to help them go through all possible outcomes, you would not expect them to come to a decision a lot faster. they have been slow to do this, but the web business is worth something. i don't know what. if you want to go 2.5 times operating profit, it is probably worth $2 billion. the cash we can value as cash and add it to the alibaba assets. as a stand-alone business, it might be worth something. the problem is it is rapidly and his weakest in

the places it needs to be strongest, most decidedly mobile. emily: let's talk about that. of piper jaffray was on recently and said yahoo! made a decision to push forward as a tech company when marissa mayer came on. we think it's a media company. listen to what he had to say. >> yahoo! made a decision to be a media company. in our -- to be a tech company. in our opinion, they are a media company. i think that's the point where it has been difficult for yahoo!. they need to get back to their core. how would we feel about yahoo! as a standalone if they got back to their core content? we would be excited about that. if not, we wouldn't. emily: the huffington post was

bought by aol. for ryan might be -- verizon might be a buyer of yahoo! news core business. what do you think yahoo! becomes? >> they are a website with hundreds of millions of eyeballs that should be run as a media business. -- they need to run it as a media business, determine who is the audience, what kind of content they want. you have to look at it as a media business. i have been associated with yahoo! from the days of the ipo. are we a media company? are we a tech company? are we a media company with a tech arm or a tech company with a media arm? they could not make up their minds. is definitely a media

company. this is why verizon potential he wants to buy them. they have the pipes to deliver content. mark, you said you guys are buyers. would you buy more yahoo! or more alibaba? mark: we took a position of a few months back and it has been a nice return for us, which was the swap where we went long on yahoo! and shorted alibaba against it. then we felt the opportunities alibaba, soong for we swapped that short. i think we are at a decision point. we probably would be neville spurs here and start to increase here and -- nibblers start to increase the stake. any time you can lie an asset for less than its intrinsic

value, that's a good thing. if you could have the ultimate, which is run this company like a model, use the core acid as a war chest to build the content and the thing the guys were just -- use the core asset as a war chest to build the content, and the thing the guys were just talking about, that could be a good thing. emily:, ceo of morden creek and our editor at large cory johnson in new york, thank you all for weighing in. now to another developing story may bewatching, spotify close to a concession with music labels. they are going to allow some make service -- the

move comes with artists like taylor swift withholding albums. ceo oftly spoke with the the adams factory and an early spotify investor. take a look at what he had to say before spotify made this decision. >> i don't know if spotify needs to get over the taylor swift problem as much as it is people have to see the future. already because free exists. it's a flawed argument when you say i don't want my music on any service that offers free one free already exist. emily: is taylor swift wrong? is she on the wrong side of history? >> i want say wrong, but it's a flawed argument. emily: maybe, but now spotify is giving taylor swift sword of what she wants.

talent manager for lady gaga will be on studio 1.0 tomorrow right here on bloomberg television. coming up, cisco switching strategies. we will explain, next. ♪

emily: cisco is changing course. replacing collaboration tools that sack. their words, not mine. move follows a similar one from microsoft to add voice calling and conferencing features to its cloud software. the space is crowded. discuss is the

general manager of cisco's collaboration technology. .ou guys said they suck why? >> people experience this all the time with meetings that don't start on time, inability to connect with people. the legacy technologies are not that great. we have seen a total revolution with cloud and mobile over the last few years. we are moving everything we do into the cloud. we are expanding into the cloud. you have had growth. why would you compromise that? >> it is not compromise. we think we can accelerate. emily: does it make you more vulnerable to startups? can buy our cloud service. we have a free version as well that will now include calling.

in a phone. we have conferencing devices. that part of our business is growing strongly. our customers are saying we want the complexity to be gone. we want to get it from the cloud. emily: i am going to elaborate a little because we use a lot of , andservices here honestly, a lot of them leave a lot to be desired. what are you doing to improve things on the software side? -- why therise of business is growing so strongly is because we have made huge improvements in the quality of the experience. to move beyond where we have been, we had to step into the cloud in a big way. that is where the business is. have web conferencing, telephones, and videoconferencing.

these things are not hosted in the cloud. there is software infrastructure in your business. that in thell of cloud and redesigning the experience, we think we can totally transform it to make it magical. what do you think of a company like slack that is giving away collaboration software for free? thing.e doing the same cisco spark is free. this is an incredible trend. whether it is slack, spark, or any of the companies in the space, it is transforming the way people communicate on a day in and day out basis. e-mail was a terrible way to communicate. i think everybody knows that. is this messaging is a much better way to communicate. -- business messaging is a better way to communicate. emily: so why spark over slack?

>> we want to not just message people with text but see their faces, have conference calls, to voiceless communication. that is what we have. you can hit a button and be in a live hd video call. emily: you wanted to be like 90% that have video. >> 100%. emily: how? >> one, make it affordable. two, make the whole experience affordable. over the last year, we totally our endpoint product lineup. we won eight product awards for industrial design and user experience, and our video business is booming. , we increased revenue

when we reduced the price. emily: ok. well, i hope it gets better. thank you so much for joining us today. we aren in the show, going to get an update on the cisco-ericsson partnership. coming up, david's as loft runs one of the largest cable companies in the world. what is he doing to stop cord cutters? ♪

emily: amazon is upping the ante in the battle for court cutters. today it said it would offer programming from channels like showtime and stars for as little as $8.99 a month. today's announcement indicates that streaming video is more than a hobby for the retail giant as the company battles

both netflix and hulu for market share. lou or newuld also subscribers to the $99 a year prime program. new subscribers to the $99 a year prime program. is expanding and growing its international exposure. asked the president how he sees the cable business evolving . >> we are seeing subscriber growth throughout latin america, eastern europe, and big parts of asia. western europe and the u.s. for the last two or three years were flat. the u.s. started to turn down a little bit. for the first six months of this -- we- nine months started to see down a little bit. , it felt like it was 1.5 percent.own

98 million or so. the question was was that a blip or have we made it to? the answer is we don't know yet. we haven't seen it yet because there is a three or four month lag before we actually get paid, but in the last quarter, there were some increases. household formation in the u.s. has been at it all time low. we don't know if this is a just asian, if it will stabilize, or if it will turn a little bit. , if ithis is a gestation will stabilize, or if it will turn a little bit. is tvst thing for us everywhere. tv everywhere is a product

where, as a consumer, you can from yourng you want cable balks. the commercials are in there, and they are measured. ox.cable b the commercials are in there, and they are measured. in that.s a leader we launched a new product called discovery go. it's nine channels. if you are a cable subscriber, , you can of the u.s. download and watch our nine channels. linear watch them on a basis. you can watch a number of shows. , but wely days developed a relationship directly with the consumer. saw nbc taken interest in buzz feed. we saw disney and hearst taken

interest in vice. it ourselves.g we bought a digital company in san francisco and we built it up . we have 92 channels, 300 million streams a month, which is about 70% of what device is. it's all categories, exploration, science, adventure. aligns with our brand. right now, we are making a little money or breaking even, but it is a big millennial generation, and we think we can continue to grow that. eventually, we will have enough scale to be able to monetize it. the keyook at the u.s., that differentiates us is we have done the majority of our istribution deals in the u.s. we have double-digit or high

single digit guaranteed. we have 14 channels, about 12% of the viewership in the u.s., and almost all of our distribution deals are done it double-digit. , we if viewership declines will have growth in the u.s. almost no matter what. emily: walt disney is doubling down on digital media, boosting its stake in vice to $400 million. the company will use the extra money for programming and expansion. at $400 is valued million. up next, our exclusive interview bill maris discussing their new strategy. ♪

emily: i am emily chang. china has no domestic player in the game.

we have nearly $2.5 billion and what can you tell us on the latest on this? ofthis is another example ds forting bi semiconductor companies and we have seen deals. we are being told that there is the unsolicited offer on the aares by a group led by resources and semiconductor business. -- we alreadyhat know that on semiconductor agreed to buy this. the china resources are a huge conglomerate and they have been doing well this year, rising

15%. emily: given the chinese demand for chips. , i find it surprising they do not have a chip giant. what are they doing about this? create are trying to national champion with semiconductors and they will invest over the next 10 years to develop chips. intel spends as much as a decade. we have seen clashes between the china and the u.s. and china is trying to up their game. the top 10 chipmakers are mostly u.s. companies.

emily: how much do they make? >> they say it is great for china and it is strategic for fairchild. they have been surpassed by rivals, like texas instruments. we are hearing they are going back to the drawing board to theat china resources and groups. back to you, emily. emily: we will continue to follow that in hong kong. thank you for the update. ♪ well, google ventures has a new name and a strategy.

the capital firm has reduced involvements and is shifting to mature companies. in theed fewer deals $100,000-$300,000 range. we are thinking about the international strategy and abandoning the overseas investing. hat will they do with the money in the new era? joining me is the ceo, in person. what is behind the evolution of the strategy? guest: out for that has -- alphabet has changed things and we thought it became important remind peopleo of the past and move forward.

emily: what does larry want you to do? guest: about the name? separateu are your own entity. guest: we get into the details of micromanaging and how you can do things.ose emily: do you feel like you have newfound freedom or autonomy in the structure? guest: we have always operated we hired our and own team. it is business as usual, apart from a new website. emily: your interests are not aligned with google. your interests are aligned with entrepreneurs. why should entrepreneurs go to

gv? guest: i would rewind that. the interests are aligned, in the sense that we are utilizing and working with the people at google and the other alphabet companies. we lean on that a lot. it is important. emily: we saw a third of your .nvestments in science, data, what do you want to do more and less of? guest: it is hard to tell, in advance. life science and health care will remain important to us. i suspect that it will be, in terms of numbers of investments, a top category. into life's dig sciences and the kinds of life-sciences you are prioritizing. are you more or less interested

in digital? guest: we look at a full spec from from diagnostics to therapeutics, to payment systems. emily: one of the areas that is evolving is a gray area the fda could regulate in the future. it is risky and it could be a breakthrough. guest: innovation always front runs innovate -- regulation. no one wants to live in a world without the fda. when you have a partnership with a company like 23 and me, you see a great outcome. weis an area of disruption want to invest and we encourage the entrepreneurs to work within a framework to make sure the innovations see the light of day.

emily: you are not afraid of the investments, is that what you are saying? guest: that is right. err ons always a want to the side of safety and transparency. that is how we encourage the companies. it is not that different than drones. the faa wants to find a way to regulate. nobody wants to live in a world where there is no regulation on drones or there are no drones at all. 23 and me is a great example. they were shut down for a couple of years for their project. there is a lot of work that needs to be done behind privacy tore genomes information that can be used for

patients. emily: what is important is liquidity is frozen. is lower thisipos year. do you have any concerns about over funding? general, yes. not so much with life sciences. so much happened and it will change the entire health care landscape. emily: like what? guest: the convergence of technology with health care. we can now decode the genome. 10-15 years ago, it was not even possible. there are a range of companies that will remake this. guest: it is hard to come by now. not just life-sciences stop what is the approach their -- not just life-sciences. what is the approach there? thet: the exits are

product. exits if you great hold that point of view. emily: a stand-alone venture fund for this area, you are going head-to-head with them. it would be interesting to partner with them. guest: we talked about this and look at it side by side and not head-to-head. investing $200 million a year or more in life science this. -- life-sciences. we would love to have them as a partner. emily: any other firms you would consider syndicating deals with? guest: polaris. we have worked with great funds in the past. great partners. emily: how do you see the valuations and trends differ from the enterprise trends we

might understand better? guest: you can go into a garage months.te an app in 18 in life-sciences, we are not there. these companies take longer, raise more money, do significant things, but it takes phd's and people who have invested their careers and something new. it is not as heated and competitive. guest: all right. we are going to continue the conversation after the break. from theet an update ceo on the partnership later on. ♪

emily: tomorrow, do not miss a conversation with the ceo of qatar airways. there back with the ceo of former google ventures. what makes yahoo! yahoo!? guest: marissa has a tough job and it is a tough problem to solve. not having worked there, it is hard to know what to do. it seems to me the public market businesses the core and i know that marissa is incredibly smart, having worked with her. low expectations help.

they were high when she entered and the lowering of expectations may help. emily: why'd you think it is undervalued? guest: i have respect for the ad engine. there are a lot of great people there. i would not underestimate that. emily: doubling down on yahoo! as a technology company, some say this is the admission of defeat that she could not execute her strategy. guest: i think it is too soon to tell. it is easy to play armchair porter back and everybody has a magnifying glass. time will tell. being a technology company is not a ad that debate. t to make.ad beet emily: what do you think happens eyer?marissa m

guest: she is young. she has had an incredible career, so far. i would want more time to execute and i think she has faith in her team. as a longtime user of the homepage, i know there is a lot of incredible content there. i am not as negative as everyone else seems to be. emily: what does yahoo! we become? guest: a good question from or marissa. emily: private is why we are seeing a lot of companies not go public. you are focusing on mature companies. what is the advice ongoing public? guest: the pendulum has swung.

as the internet company ceo, i saw a carnage of companies going public too soon. the pendulum has gone the other way and companies could well be public entities are deciding not to. there is a happy medium. there is pressure, rigor, and can beine that comes and valuable. it is underestimated, in some cases. emily: they went public at nine dollars a share and it was below the valuation they raised. why do you think it was a success? guest: there was a fund-raising round and they underpriced the expected range. it could have filled a book. there is a market of liquidity's for the employees and the

shareholders and it has established them as a public company and a brand. uber, gv is an investor. is it dangerous? guest: it speaks to the expectations and the impact it is having on our lives. you can use it as a public service. any concerns they will not live up to the valuation? guest: they have a lot of work to do. up to the not live expectations, the company will get hurt.

i know the quality of people they are hiring and i have a lot of confidence in that. what about companies that are in the red for the violations they got? you see people who invest in the public market investing in private companies and there is a surprise that they are publicreated like companies and they are being market down. that will cause some entrepreneurs to because his. emily: we have a conversation with mike morris about why sequoia has no women partners. women working in the china business. why is this the case? high schools.

women, in america and europe, they tend to elect to not study sciences when they are 11-12 and the hiring pool is smaller. emily: you think it is a pipeline problem? some say you are not looking hard enough. >> we look very hard. we hired a woman from stanford who is as good as her peers. we are not prepared to lower our standards. emily: what is a reaction to that? guest: i think he cares about these issues and i would not jump to conclusions on that. i think we can all do better. we have one female general partner at gv. emily: why?

guest: because we are not good enough. it was easier to find men. that is not a good answer. emily: he says he does not want to lower the standards. is there a double standard in venture capital with a higher percentage of women, 80% have degrees and 61% of men have them. men can be hired on potential and women have to prove themselves. is there a double standard? guest: i think so. everybody has biases. i think it is a fact that women are treated differently in the , at google, names with female names were treated and evaluated differently, versus if they had males

names. ses.ll have these bia hat are you doing about it? guest: we are not hiring general partners right now. the next general partner should the a woman. -- be a wpooman. emily: we will hold you to it. guest: please do. emily: thank you for stopping by. ♪

emily: cisco and ericsson are in increaseship to competition. they stopped short of a merger. it has similar aspects.

here is how it is working so far. thank you for joining us. why not a full merger? guest: this is a next generation strategic partnership to get moving from day one. to have the leader of transport networks and the enterprise networks that combined with our mobility is where we want to go for our customers to come across this. we want to do it from day one. emily: what are you doing to grow with the equipment business slowing? guest: we will add more value. i went out earlier to media events and talked about a slow transformation we need to's heat up. we think we can speed it up and it will lead to new revenue

opportunities. what do you do to pick up slack? guest: today, we will reach one billion subscriptions and, if edition of the 2021 the mobility report where we can say we are reaching the subscriptions, i would not say it is finished. it just started with the capacity. emily: i was speaking with bill marist about the lack of women in venture capital and you are working to create a more equal workforce and making a big commitment. with 116 employees, it is key for us to get women in leadership positions and in high positions in the company. we have a goal of 30% female in the workforce. it is an aggressive target.

emily: how big is the company? employees.000 emily: how difficult is it to find women? guest: it is not about that. it is about making people interested outside and we are focusing on a transition with leadership teams. my own leadership team is 35% women. emily: glad to hear that you are doing that. thank you. that does it for this edition of bloomberg west. we will see you tomorrow. do not miss it.

>> from our studios in new york city, this is charlie rose. charlie: george osborne is here. the house of commons authorized airstrikes in syria. nation --ess the addressed the nation after the attack in san bernardino. the president said he would draw on american power to combat isis. europe is facing threats.